For Highway Accountants

Transcription

1 Disaster Guidelines For Highway Accountants FEMA Committee 11/2010

2 Table of Contents Committee Members... 1 Introduction... 1 Sources of Disaster Funds... 2 ER Funds (FHWA)... 2 General Process... 2 FEMA... 3 State Aid Disaster... 3 General Process... 3 First Steps in the Event of a Disaster... 3 Identify Damage Sites... 4 Update County Website... 4 Cost Accounting Requirements... 4 Start Tracking Costs... 4 Check with FEMA... 4 Develop Worksheets... 4 Site Overview... 5 Cost Summary... 5 Site Cost Summary... 5 Employee Benefit Calculation... 5 Employee Work Record... 5 Equipment Rates & FEMA Codes... 5 Equipment Work Record... 5 Inventory Withdrawal Record... 5 Vendor/Contractor Spreadsheet... 5 Equipment Rental Record... 5 Revenue Tracking Spreadsheet... 5 Once a Disaster Has Been Declared... 5 Emergency Kick Off Meeting (FEMA only)... 5 Emergency Coordinator... 6 FEMA Field Rep Resolutions... 6 Disaster Declaration Request to Governor... 6 Emergency Procurement... 6 Tips... 6 References... 7 M.S Political Subdivision's Powers To Fast Provide Emergency Aid... 7 Acronyms... 8

3 Examples... 9 Example A1 Site Overview... 9 Example A2 Total Cost Summary Example A3 Site Cost Summary Example B1 Employee Benefit Calculation Example B2 Employee Work Record Example C1 Equipment Rates & FEMA Codes Example C2 Equipment Work Record Example D1 Inventory Withdrawal Record Example E1 Vendor/Contractor Spreadsheet Example E2 Equipment Rental Record Example F1 Revenue Tracking Spreadsheet Example G1 Detailed Damage Inspection Report (DDIR) Example H1 Disaster Cost Accounts... 22

4 Committee Members Kim Kildal, Becker County Anne Zellner, Cook County Sheila Schroeder, Houston County Barb O hara, Kittson County Mike Kilanowski, SAF Joan Peters, SAF Introduction There are many types of disasters; fire, flood, tornado, etc. There are several types of disaster funding you may come in contact with if your county qualifies for disaster funding. The most common ones are listed below. President s Disaster Relief Fund o Managed by the Federal Emergency Management Agency (FEMA) Emergency Relief (ER) funds o Managed by Mn/DOT Office of Maintenance with assistance from the State Aid for Local Transportation (SALT) through the Federal Highway Administration (FHWA) State Aid Disaster funds o Managed by SALT If your county experiences a disaster event, it is likely to create some panic and chaos. This guide is intended to give you an overview of issues you, as a highway accountant, may be exposed to or be responsible for when dealing with a disaster event. Keep in mind Requirements may be different or change with each disaster so be sure to use the most current procedures available. It is crucial that you start tracking costs immediately if you think your county may meet the threshold for disaster funding. Separate the emergency work and debris removal costs from the permanent work costs. Take pictures, measurements with GPS quardinents if possible, before, during and after repairs have been made. It may be beneficial to include the site numbers on each photo. Do not wait for FEMA or FHWA to contact you. Do not wait for FEMA or FHWA forms which may not be available right away. Be aware, your county may be combined with other areas and declared a disaster even if your county has experience less damage. FHWA, FEMA & State Aid State Disaster are separate and distinctive programs. 1

5 Sources of Disaster Funds There are various sources of disaster funds. Some of the most common funds are FEMA, FHWA and State Disaster Funds. Your disaster may qualify for one or more of these funding sources based on the classification of the roadway that is damaged. Be aware thresholds and criteria for each source of disaster funding is different and rules may change from disaster to disaster. The most current information is available from the various websites. Talk to your District State Aid Engineers (DSAE) regarding funding availability and applicability. ER Funds (FHWA) FHWA funds are managed by the Mn/DOT Office of Maintenance through the Federal Highway Administration (FHWA). Assistance is provided by the State Aid for Local Transportation (SALT) Once your county has been declared a federal disaster, FHWA funds may be available for major collectors and above. More information may be obtained from the FHWA website. If a site is eligible for FHWA funds, FEMA will not participate. Only Major Collectors or above qualify. o Reference map on Mn/DOT website Total event - all Detailed Damage Inspection Reports (DDIR s) must be greater than $700,000 to qualify as a disaster event. See Example G1, page 21. FHWA has final decision on geographical areas being affected and determination of same event. Individual sites must have estimated damage greater than $5,000. Individual sites may be grouped together if less than ½ mile apart. General Process Governor declares an emergency or President declares a disaster. Mn/DOT and county engineer assess damage. Mn/DOT sends letter to FHWA stating there is sufficient damage to declare an event. FHWA responds and may perform site visit to access damage and define sites, otherwise DSAE assists. County submits DDIR to DSAE. DSAE assigns a SP # and forwards to Maintenance & SALT. No funds are approved until DDIR is approved by DSAE and FHWA and the project is authorized. 2

6 FEMA FEMA funding comes from the President s Disaster Relief Fund, which is managed by the Federal Emergency Management Agency (FEMA). Your county must be declared as part of a federal disaster. Generally the County Emergency Coordinator will request the County Board issue a resolution to have your county declared a disaster area. More information may be obtained from the FEMA website In most cases, if FEMA funds are received, FHWA will not participate and vice versa. (You can never receive two types of funding for the same work.) FEMA funds are eligible for local and minor collectors. State Aid Disaster State Aid Disaster funds are managed by SALT per M.S and Mn Rule These funds are readily available and can be quickly disbursed to the county before federal funds may be available. State Aid Disaster Fund revenue does not have any effect on eligibility for FWHA or FEMA funds. Damage estimates on CSAH roads submitted by the county must exceed 10% of current annual state aid allotment per MN Rule Disaster Board considers availability of federal funds before making recommendation. Disaster Board consists of a representative of the Commissioner (DSAE) and two county representatives who must either be a county engineer or a member of a county board and be from counties other than the requesting county. M.S , Sudb 3(b) General Process County contacts DSAE to discuss disaster funding and process Disaster Board inspects damage area and makes recommendation for funding to Commissioner (SALT). DSAE submits letter for disaster funds to the Commissioner (SALT). State Aid Disaster Funds must be reimbursed if Federal Funds are received and total revenue exceeds total expenditures. DSAE certifies work is complete to SALT. County submits final expenditure report with final documentation. First Steps in the Event of a Disaster Some of the first steps will be to recognize that the event could be declared a disaster. Listen to the news Talk to your engineer, maintenance supervisor and/or the Emergency Coordinator. Watch neighboring areas to see if they have been declared a disaster area. Check the websites for declaration listings: FEMA- ( FHWA does not currently have a website showing this but it generally follows FEMA. 3

7 Talk to other accountants that have had a disaster event. Their experience can be very valuable and get you started on the right track. If you think you may have a disaster event, you will want to start the following steps immediately. Review the County s Insurance Policies In the event there is damage to buildings, vehicles, or equipment you may be able to recover costs from this source. You may need to provide a complete copy of the county insurance policy. Identify Damage Sites Get a county map. Identify roads that are major collectors or above and those that are not. (See Mn/DOT website for functional class map - referenced in the FHWA section). Have employees mark the areas, assign site numbers and photograph each site as damage is assessed. Separate damage sites by road number, road system and road surface. Update County Website Post road closures, status of your county roads and the Designated Public Relations and/or the Emergency Coordinator on your county website. This will help to alleviate calls to your office. Cost Accounting Requirements If cost accounts are not already included in your cost accounting system, start setting up special accounts for each type of work category, such as debris and sand bag cleanup, emergency protective areas (barricading, flagging, signing, sand bagging) and permanent restoration. Remember to track the Administrative/Accounting hours too. See example H1, page 22. Start Tracking Costs Check with FEMA Check with the FEMA Public Assistance Policy Digest available on the FEMA website for a complete list of work categories. Develop Worksheets Immediately develop spreadsheets to track costs by site and category. This way you will have these costs available for history and you will be able to convert them to FEMA equipment rates and benefits if necessary. Various spreadsheets can be created to track work as listed in the example below. These are only examples and you may modify any of the spreadsheets to meet your county s needs. If the FEMA personnel have already arrived, they may provide you with their spreadsheets to use to track these costs. 4

8 Site Overview - See Example A1, page 9. Site location listing that coincides with the map and states work type and tracks progress of the repairs. Cost Summary See Example A2, page 10. Includes all costs as incurred separated by site. Site Cost Summary See Example A3, page 11. Includes costs by site, both completed and estimated Employee Benefit Calculation See Example B1, page 12. Includes employee wage rates, overtime rates and fringe benefit percentages. Note there will be different rates for full and part time workers if there are different benefits paid. Employee Work Record See Example B2, page 14. Log of actual work completed and corresponding labor rates. Be prepared to produce daily time sheets Equipment Rates & FEMA Codes See Example C1, page 15. Include equipment you think will be used with their respective rental rates, FEMA codes and the FEMA rates. Equipment Work Record See Example C2, page 16. Log of actual work completed and corresponding equipment rates. Be prepared to produce daily time sheets Inventory Withdrawal Record See Example D1, page 17. Include current year bid and quote prices. Common items to include are gravel, stockpile gravel, sign material, culverts, sand bags, etc. Keep all invoices for products ordered for the disaster to document costs. Be prepared to verify unit costs on inventory items. Vendor/Contractor Spreadsheet See Example E1, page 18. Keep a copy of all invoices, including date paid, warrant number, purchase order and document the site or location of work performed. Equipment Rental Record See Example E2, page 19. Keep a copy of all invoices, including date paid, warrant number, purchase order and document the site or location of work performed. Revenue Tracking Spreadsheet See Example F1, page 20. You need to split out the federal and state receipts. You need to keep track of what you actually spent vs the Project Worksheet (PW) estimated amounts. This will help you determine if you still have funds due to the county. Track receipt number and date received. Once a Disaster Has Been Declared Emergency Kick-Off Meeting (FEMA only) There should be an emergency kick-off meeting. It is absolutely necessary for the accountant to attend this meeting. You will obtain valuable information 5

9 and resources. Be sure to obtain the name and phone number of your FEMA Field Representative so you can contact them to set up a meeting. Emergency Coordinator Find out the County Emergency Coordinator s name and phone number. The Coordinator should assist other departments, townships and cities within your county. Refer all inquiries to the Emergency Coordinator. FEMA Field Rep. Contact your FEMA Field Rep. that will be doing your PW s. You need to be aware of what information they will require and the format for which the documentation will be required. Resolutions Disaster Declaration Request to Governor It will be necessary for the county to pass a resolution acknowledging the disaster declaration. An example can be found on the FEMA website. This will likely be done by the Emergency Coordinator. Emergency Procurement You may need a board resolution for emergency procurement mode. This will allow you to temporarily bypass the bidding process. Reference M.S & M.S Examples of resolutions can be obtained from the SAF website at Tips Be sure to use the most current information available because procedures change from year to year and/or disaster event to disaster event. Currently FEMA pays for Category B for a limited time depending on the disaster type. Currently only overtime hours are paid for FEMA Category A and B; these are considered emergency work. Make sure your employees use the appropriate cost accounts and provide specific and detailed explanation of the work being done. You may want to keep all the columns on your spreadsheets consistent so you can cut and paste the information in case costs are transferred from one category to another. Hiring additional help for the disaster may be beneficial because their wages (including overtime) may be reimbursable at a higher rate than permanent workforce. This help includes contractors, inspectors, additional office help, etc. It is not always in your best interest to combine too many sites into one site when completing your documentation. These costs may need to be identified separately at a future date for hazard mitigation application. Make sure you know your sales and use tax laws. For example, out of state contractors and third party aggregate haulers. Currently FEMA funds are not eligible to be paid on permanent repair work on major collector routes. 6

10 FEMA reimbursements will affect your total maintenance costs; refer to the State Aid Accounting Manual Chapter 16 for further discussion. Remember you still have to work within the same contracting laws and rules and not all costs will qualify under the emergency contracting procurement guidelines. Be aware of contracting, bid letting and purchasing protocols in your county. Be aware that state, federal and county procedures, such as prevailing wages still need to be followed. Emergency signage replacements may be reimbursable. References MN Homeland Security & Emergency Management FHWA (ER Manual) Mn/DOT functional class map FEMA Public Assistance Policy Guide SALT Disaster Assistance Guidance MN Statutes o M.S Uniform Contracting Law M.S Political Subdivision's Powers To Fast Provide Emergency Aid o M.S , Subd. 1 - Contracts Of County Boards 7

11 Acronyms A complete list of acronyms can be found on the SAF website under References. The acronyms below were used in this document. DDIR Detailed Damage Inspection Report (FHWA) DSAE District State Aid Engineer FEMA - Federal Emergency Management Agency FHWA - Federal Highway Administration LRIP Local Road Improvement Program M.S. - Minnesota Statute PW - Project Worksheet (FEMA) SAF - State Aid Finance SALT - State Aid for Local Transportation 8

12 Examples Example A1 - Site Overview 9

13 Example A2 - Total Cost Summary 10

14 Example A3 - Site Cost Summary 11

15 Example B1 - Employee Benefit Calculation 12

16 13

17 Example B2 - Employee Work Record 14

18 Example C1 - Equipment Rates & FEMA Codes 15

19 Example C2 - Equipment Work Record 16

20 Example D1 - Inventory Withdrawal Record 17

21 Example E1 - Vendor/Contractor Spreadsheet 18

22 Example E2 - Equipment Rental Record 19

23 Example F1 - Revenue Tracking Spreadsheet 20